BAKU, Azerbaijan, December 5. Iran's gas shortage crisis has become serious, Former Managing Director of the National Iranian Gas Company (NIGC), Hamid-Reza Araqi told ILNA, Trend reports.
Araqi said that in the coming winter, gas supply to industrial facilities should be limited so that gas is supplied to living apartments without interruption, since if the latter is cut off, Iran could end up with social crisis on its hands.
“On the other hand, if the gas supplied to industrial facilities is interrupted, an economic crisis could occur,” he added.
As for gas imports, he said that if Iran imports gas from the northern countries at certain times, it may seem as a positive solution, but the reality is different.
"Iran solves the country's problems by exporting gas. For example, during the coronavirus pandemic, Iran imported medicine with the money obtained from the gas exports to Iraq. Let's assume that if Iran imports gas, where will it get its money from? Also, Iran will not be able to pay the money with the current bank-related problems,” Araqi noted.
According to the analyst, Iran needs to invest and use new technologies to increase gas production.
"For example, the South Pars gas field, which is a joint gas field between Iran with Qatar, is at such a stage that certain steps must be taken to increase its activity. Currently, Qatar invests in the mentioned field, and uses new technology, as well as signs contracts with big companies. In short, it meets the needs of the world and will produce much more gas in the future. However, Iran does not invest in this field, and it is not possible to import new technology to the country, which in turn results in a decrease in production from gas wells in the field,” he explained.
In general, Iran exports gas to neighboring countries, including Türkiye and Iraq at various times of the year.
Iran's gas production is currently around 1 billion cubic meters per day. The South Pars gas field accounts for 75 percent of the country's gas production, other gas fields for 20 percent, and oil fields for 5 percent. The South Pars gas field (called North Dome in Qatar) is a joint gas field between Iran and Qatar. The proven reserves of the South Pars Gas Field are estimated at 51 trillion cubic meters of gas, of which 36 trillion are extractable. Iran's share in the field is 14 trillion cubic meters of gas and 18 billion barrels of gas condensate.
Over the last Iranian year (March 21, 2021 through March 20, 2022), Iran produced a total of 231 billion cubic meters of rich gas from the South Pars gas field. Reportedly, Iran's gas production from the mentioned field reached 705 million cubic meters per day at the end of the last Iranian year.
The US imposed new sanctions on Iran in November 2018. Over the past period, the sanctions affected Iranian oil exports, more than 700 banks, companies, and individuals. The sanctions have resulted in the freezing of Iranian assets abroad.
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